Should I Wait To Buy?

Client signing contract
Over the last few weeks we have continually heard buyers suggesting to us that they are going to pause their search so they can wait for the bottom of the market to buy. Can we suggest that those waiting have missed the train & that has well & truly left the station. Clearance rates at auction have improved & the auctions we regularly attend for our clients have seen multiple bidders & sales selling above vendors reserve price.

Now we aren’t suggesting that we are heading for another boom market. As a byproduct of negative media reporting that is usually at least 90 days behind the actual market. We have seen nervous vendors being overly cautious on setting expectations & agents very willing to except this when quoting the property in the market place at a lower level.

This activity added to the lack of stock on the market & the high demand from buyers are driving results that a qualified buyer advocate with experience in the market would be advising their clients are the actual value of properties.

For example we recently bid at a property for a client & after the first inspection gave them the “real” value which was $250,000 above the top of the agents quote. Now the agent would say the vendors reserve was in the range (remember they’re nervous right now & have lower expectations) so there was no need to change the advertised quote. On auction day the property sold approximately $350,000 above the advertised range, but $100,000 over where we set our base value.

This meant our buyer who was represented by an experienced buyer advocate expected that result & was ready for it, on the other side of the coin were the buyers not represented that we’re trying to buy themselves & were visibly shocked & dismayed & being nowhere close to being able to buy it.

Put simply there a very few good buys on the market at the moment, they were available 90 days ago, buying now you will need to pay fair market value & depending on the demand for the type of home, location & price range for A grade properties. Things may improve for buyers once more stock comes to market, but that will only occur if their nerves are appeased.

Happy buying & let us know if we can help.

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